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Any investors hoping to find a High Yield - Bonds fund could think about starting with Eaton Vance Floating-Rate Advantage A (EAFAX - Free Report) . EAFAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EAFAX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Eaton Vance is responsible for EAFAX, and the company is based out of Boston, MA. Since Eaton Vance Floating-Rate Advantage A made its debut in April of 2008, EAFAX has garnered more than $1.13 billion in assets. The fund's current manager, Craig P. Russ, has been in charge of the fund since April of 2008.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.76%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.99%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, EAFAX's standard deviation comes in at 10.18%, compared to the category average of 12.62%. The standard deviation of the fund over the past 5 years is 8.24% compared to the category average of 10.83%. This makes the fund less volatile than its peers over the past half-decade.
EAFAX carries a beta of 0.3, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 2.37, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, EAFAX is a load fund. It has an expense ratio of 1.01% compared to the category average of 1.01%. EAFAX is actually on par with its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, Eaton Vance Floating-Rate Advantage A ( EAFAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and on par fees, Eaton Vance Floating-Rate Advantage A ( EAFAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on EAFAXin the High Yield - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is EAFAX a Strong Bond Fund Right Now?
Any investors hoping to find a High Yield - Bonds fund could think about starting with Eaton Vance Floating-Rate Advantage A (EAFAX - Free Report) . EAFAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
EAFAX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Eaton Vance is responsible for EAFAX, and the company is based out of Boston, MA. Since Eaton Vance Floating-Rate Advantage A made its debut in April of 2008, EAFAX has garnered more than $1.13 billion in assets. The fund's current manager, Craig P. Russ, has been in charge of the fund since April of 2008.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.76%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.99%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, EAFAX's standard deviation comes in at 10.18%, compared to the category average of 12.62%. The standard deviation of the fund over the past 5 years is 8.24% compared to the category average of 10.83%. This makes the fund less volatile than its peers over the past half-decade.
EAFAX carries a beta of 0.3, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 2.37, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, EAFAX is a load fund. It has an expense ratio of 1.01% compared to the category average of 1.01%. EAFAX is actually on par with its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, Eaton Vance Floating-Rate Advantage A ( EAFAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and on par fees, Eaton Vance Floating-Rate Advantage A ( EAFAX ) looks like a good potential choice for investors right now.
This could just be the start of your research on EAFAXin the High Yield - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.